Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.
This Bhide guy sounds a bit wet to be quite honest. But then, he is an academic. He doesn't seem to realise how the corporate world works. It isn't always about WHAT you know (academically) it is more about WHO you know. And not happy with how things played out for him, now he is taking it to the FCA. jfc...
Tell that to the people whose pensions invested in government bonds which have crashed harder this year than equities.
Compare Vanguard LifeStrategy 20% to the 100% product. And people would buy the 20% because it was considered highly defensive...
So basically you hate everything that SMT invests in - so why are you here? Why do you hold it?
Tesla is about more than just cars. They've grown to where they are right now just on the back of cars. But Tesla has plenty of other opportunities - most notably in grid-scale energy storage.
I'm averaging down too.
When the recession bites and it kills off the supply-side inflation through demand destruction then they'll have no reason to keep the rates up and we'll be back down to 0% (or less!).
Invest for the next economic event, not the current one.
The discount is always about the managers - it can be market sentiment too. Growth stock is not currently in favour. It could be another year or two before growth stocks have a turn around. In the meantime just keep the DCA going...
https://pharmaphorum.com/news/modernas-hiv-vaccine-prepped-for-trials-in-africa/
I don't see it that way? The loans were repayable over multiple decades and are on fixed low (as in 2021 low) interest rates. These rates may not be achievable again for many many years. Even if SMT cannot deploy the capital as quickly as it anticipated, it will still work out in the long-term.
I wonder how much of the 500mil gearing loans SMT has actually invested? Hopefully not too much and hopefully they're waiting for the bottom. In theory if they buy the bottom, and then wait for the market reversal, we're all going to be laughing this off as a needless panic in a few years.
Pre-Covid era is almost irrelevant though since 70% of all US dollars that ever existed were printed in 2020 and 2021. So the entire market is in price discovery mode trying to figure out what everything is worth.
That and - SMT hasn't just sat there doing nothing for 2 years - it will have made some smart trades in that time.